115bbe

Section 115BBE: This section is one of the harsh sections of the income tax act. Once it is proved that the cash deposit is cash credit under section 68, and then it shall levy the tax rate of flat 30% without even providing the basic exemption limit.

The penalty under section 270A: Once it is proved that you are a mischief, then penalty provision under income tax act would automatically come into the picture. The AO shall use the section 270A, to levy the penalty of 200%.

However, the penalty of 200% under section 270A can only be levied if any of the conditions is fulfilled:

Misrepresentation or suppression of facts.

Failure to record investments in the books of account.

The claim of expenditure not substantiated by any evidence.

Recording of any false entry in the books of account.

Failure to record any receipt in books of account having a bearing on total income.

That means suo moto returning of Income u/s 115BBE ultimately will lead to section 270A now?

May very case to case, but regorous verification likely before application of section 270A.

can we offer the business income under section 44AD and offer tax at above 8.5%

@ Harshil: If its eligible business, and of course, eligible assessee, then why not?

I have replied to that effect only. But an accountant clearly understands difference between turnover and (presumed) income.